New York needs more millionaires, fiscal watchdog says

New York Urged to Attract More Millionaires to Boost Tax Revenue

A recent report by the Citizens Budget Commission has raised concerns about New York falling behind other states in attracting millionaires, which could result in a loss of billions in tax revenue.

The report highlighted that while New York nearly doubled its number of millionaire earners from 2010 to 2022, states like California, Florida, and Texas surpassed it by adding millionaires at a much faster rate.

According to the report, if New York had kept pace with these states, it could have collected an additional $13 billion in taxes in 2022 alone.

New York’s share of America’s millionaires has declined by 31% since 2010, leading to significant revenue losses for the state and city.

Millionaires play a crucial role in New York’s finances, generating a substantial portion of city personal income tax revenue and state tax revenue.

However, the report noted that the number of millionaires is growing faster in states like Florida and Texas, indicating a shift in the trend of wealthy individuals moving to New York.

Factors such as high taxes, quality of life, affordability, public services, and economic opportunities influence where people choose to live, according to Andrew Rein, the commission’s president.

New York’s value proposition has weakened due to various factors like high taxes, crime concerns, hybrid work models, and rising housing costs, hampering its ability to attract and retain wealthy residents.

The report cautioned against raising taxes further, as it could drive more millionaires away from the state, exacerbating the current trend.

As the debate over tax policies and wealth distribution intensifies in the upcoming mayoral race, the focus on retaining wealthy individuals in New York remains a key issue for policymakers.